We’ve seen inflationary pressures ease and we think they will continue to easeWe need to have conversations on improving our productivityWe’ve had exceptionally-strong supply shocksWe have too many small differences between provinces creating barriersThe economy has been changing rapidlyMy intention today was to highlight the things we’re looking at in the labor marketWe are looking for further moderation in wages; not all wage measures are equal, some help separate out wage gains related to productivityI wanted to provide some info today on which productivity measures we’re watching most closelyIf the economy evolves broadly as we expect, it is reasonable to expect further cutsWe’re going to be taking it one meeting at a timeSince we started raising rates about 50% of mortgages have renewed but the other 50% will have a bigger reset and that’s something that’s factoring into our monetary policy decisionsWe don’t want to jeopardize the progress we’ve made on inflation
I spoke about the loonie and my aggressive outlook for it earlier today.
This article was written by Adam Button at www.forexlive.com.
